I-3 - Taxation Act

Section 1175.18 Disposition versions

2006-03-01

1175.18. For the purposes of this Part, two corporations that would, but for this section, be related to each other solely because of the control of any corporation by the State or Her Majesty in right of Canada or a province, other than Québec, or a right referred to in paragraph b of section 20, shall be deemed not to be related to each other.

However, where at any time a taxpayer acquires a right referred to in paragraph b of section 20 and it may reasonably be considered that one of the main purposes of the acquisition of the right was to avoid any limitation on the amount of a corporation’s capital allowance for a taxation year, for the purpose of determining whether, for the purposes of this Part, a corporation is related to any other corporation, the taxpayer is deemed to have acquired, at that time, the shares giving entitlement to the right.

1997, c. 14, s. 286; 1998, c. 16, s. 251; 2001, c. 7, s. 169.